TikTok's U.S Drama: Ban, Return and Trump's Plan
In a stunning turn of events, TikTok's U.S. operations resumed after just 20 hours of shutdown, thanks to intervention from President-elect Trump. Today, TikTok has become operational again for most American users, after it was cut off late yesterday in accordance with the U.S. government sell-off bill. But here's the catch – it's not exactly business as usual.
The Weekend Drama
Over the weekend, the incoming Trump administration has been actively pushing companies that facilitate TikTok's U.S. operations – including app stores and back-end providers – to maintain their support for the app, despite the sell-off bill's requirements.
Trump's Direct Intervention
"I'm asking companies not to let TikTok stay dark! I will issue an executive order on Monday to extend the period of time before the law's prohibitions take effect, so that we can make a deal to protect our national security. The order will also confirm that there will be no liability for any company that helped keep TikTok from going dark before my order."
The Legal Standoff
Apple and Google have taken a cautious stance, declining to restore TikTok to their app stores. The reason? The bill's explicit penalties:
"It shall be unlawful for an entity to distribute, maintain, or update (or enable the distribution, maintenance, or updating of) a foreign adversary controlled application. An entity that violates subsection (a) shall be subject to pay a civil penalty in an amount not to exceed the amount that results from multiplying $5,000 by the number of users."
Current Status
- TikTok is functional again for existing users
- New downloads remain blocked on app stores
- Oracle continues hosting TikTok's data, apparently satisfied with Trump's assurances
- The app's functionality is limited to current users only
Trump promises to issue an executive order Monday extending the sell-off deadline and protecting companies from legal penalties. However, major tech players aren't fully convinced – Apple and Google are staying cautious, facing potential $5,000-per-user fines under the Foreign Adversary Controlled Applications Act.
The Legal Minefield
This situation could become increasingly complex, as the incoming president is effectively advising providers to violate existing law. Since Trump isn't president yet, his ability to offer such assurances or extend the timeframe for TikTok's sale retrospectively remains questionable.
Trump's Bold Ownership Proposal
Trump's vision for TikTok's future reveals a significant shift toward financial interests:
"I would like the United States to have a 50% ownership position in a joint venture. By doing this, we save TikTok, keep it in good hands and allow it to stay up. Without U.S. approval, there is no TikTok. With our approval, it is worth hundreds of billions of dollars - maybe trillions."
This proposal has raised eyebrows, particularly among TikTok's Chinese owners. What started as a national security concern has morphed into what appears to be primarily a financial deal. The implications are significant: TikTok could lose a substantial portion of its local income, with the benefits flowing to Trump-approved U.S. beneficiaries.
Looking Ahead
The ripple effects of this U.S. approach could reshape the global tech landscape. As nations potentially follow suit with similar legislation, we might see a new era where data protection initiatives become intertwined with financial and taxation benefits for host countries. While TikTok's journey to being fully "back" remains complex, involving negotiations and ownership reshaping, users can take comfort in one key development: TikTok's presence in the U.S. market appears stable, even if its ownership and financial structure may look dramatically different in the future.
